Erie Indians were the first inhabitants of this region. In 1654, they were driven out by the Senecas, who occupied several sites along the banks of Cattaraugus Creek. The Cattaraugus, the principal stream of many that divide the Cattaraugus Hills, flows westward in a circuitous course, plunging through deep gorges and rippling by wide flats before entering Lake Erie. The Holland Land Company purchased the area in 1797. It was surveyed by Joseph Ellicott and Paul Busti, who became the company's agents and opened the land to settlement. A few persons built log houses here beginning in 1807. Following the War of 1812, settlement increased steadily with the arrival of families from New England. Pioneer life had many hardships because of topography, the relatively short growing season, and inadequate transportation. Lumber, cheese, and maple sugar were the staple products. Leather tanning developed, and local grist mills, textile factories, and machine works used the ample supply of water power. The Buffalo and Washington Railway, later part of the Pennsylvania line, arrived in Arcade in 1871 to furnish service to Buffalo and later to Pittsburgh. The region remains largely rural, with dairy production an important part of the agrarian economy.